Which vendor should be selected

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Reference no: EM131356393

Chris Sandvig Irrigation, Inc., has summarized the price list from four potential suppliers of an underground control valve. See the accompanying table. Annual usage is 2,400 valves; order cost is $10 per order; and annual inventory holding costs are $3.33 per unit.

Which vendor should be selected and what order quantity is best if Sandvig Irrigation wants to minimize total cost?

Vendor A		Vendor B
Quantity	Price	Quantity	Price
1-49	$35.00	1-74	$34.75
50-74	34.75	75-149	34.00
75-149	33.55	150-299	32.80
150-299	32.35	300-499	31.60
300-499	31.15	500+	30.50
500+	30.75
Vendor C		Vendor D
Quantity	Price	Quantity	Price
1-99	$34.50	1-199	$34.25
100-199	33.75	200-399	33.00
200-399	32.50	400+	31.00
400+	31.10

Reference no: EM131356393

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